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The USD/CAD pair shows mixed dynamics during the morning session, testing strong resistance at 1.3500. The US dollar is recovering after uncertain trading at the beginning of this week; however, the macroeconomic background remains ambiguous.

US Retail Sales fell 1.1% in December after -1.0% in November, while analysts had expected an improvement in dynamics to -0.8%. In addition, Industrial Production volumes corrected from -0.6% to -0.7%, while analysts' forecasts assumed -0.1%. Capacity Utilization in December decreased from 79.4% to 78.8%, which also turned out to be worse than optimistic forecasts of growth to 79.6%. The released macroeconomic data strengthened investors' confidence that the US Federal Reserve may abandon its "hawkish" policy in the future, which brings the current cycle of interest rate hikes closer to completion.

Canadian statistics, published the day before, turned out to be slightly better: the Raw Material Price Index in December fell by 3.1% after falling by 0.8% a month earlier, while analysts had expected an increase in negative dynamics to -1.3%. In turn, the Industrial Product Price Index corrected from -0.5% to -1.1%, although forecasts assumed a value of -0.3%.

On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD has reversed to growth having formed a new buy signal (located above the signal line). Stochastic keeps its upward trend but is rapidly approaching its highs, which reflects the risks of overbought US dollar in the ultra-short term.

Resistance levels: 1.3500, 1.3550, 1.3600, 1.3650. | Support levels: 1.3450, 1.3400, 1.3356, 1.3300.